Bengaluru: Axis Bank has sent emails to sellers on Snapdeal, asking them to clear outstanding dues with the bank immediately . The bank said if they fail to do so, it may initiate the process of recalling the loans and suspending overdraft facilities.

“Axis Bank have decided to cancel withdraw the unavailed limit as sanctioned by (the) Bank. Further, for availed limit, we request you to make the payment to close the facility granted to you. Remittance of all Snapdeal & other proceeds to overdraft account will be adjusted to close the availed facility,“ the communication from the bank added. The private sector lender has urged that the entire loan be paid at the earliest and should be com municated to the bank by March 24.

Sellers said they were unable to repay loans because Snapdeal has not transferred the money due to them for products sold on the platform. The All India Online Vendors Association (AIOVA) says the e-commerce company owes them about Rs 300 crore.The sellers owe various lenders about Rs 150 crore that they took as working capital loans for their operations with Snapdeal.

Snapdeal denies these claims. A spokesperson for the company sent the following emailed response to TOI on Wednesday: “There is no delay in payment of seller dues at Snapdeal. In fact, earlier this week, payment cycle for SD+ sellers has been made faster by 40% and sellers have been communicated accordingly .Allegations of delay are being made without any basis to support the same. Sellers, partners are advised to connect with the company directly and not pay heed to baseless rumours. Loans disbursed by lenders to borrowers are governed by the terms of such lending and are to be dealt with accordingly .“

AIOVA has also sent a letter to Snapdeal's founders asking them to come for a discussion to resolve the matter. “We have not heard from them yet despite repeated attempts,“ the AIOVA spokesperson said.

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